Telefonaktiebolaget LM Ericsson (publ) (ERIC-B.ST) stock analysis

In our weekly check, Telefonaktiebolaget LM Ericsson (publ) is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 19 pass, warnings: 4, red flags: 2.

About Telefonaktiebolaget LM Ericsson (publ)

Telefonaktiebolaget LM Ericsson (publ) is a Technology company (Communication Equipment) based in Sweden, listed on STO as ERIC-B.ST.

What our checks show for ERIC-B.ST

Red flags

• Revenue fell 5.3% a year over the last 3 years.
• The stock has fallen as much as 70% from a peak. Would you have held through that?

Warning signs

• The net margin fell by 1.4 points over 5 years, to 8.4%: the company keeps less of each sale as profit.
• Analysts expect only about 1.8% a year of growth in revenue.
• The net margin is only 8.4%: little room if costs rise.
• The stock is still below its previous peak.

Strengths

• Debt is low: 0.41x equity.
• Operating profit covers interest 10.9 times over.
• The gross margin is 48% and has risen by 4.6 points: pricing power is holding.
• Operating cash flow is 1.67x net profit: the profit arrives as real cash.
• Free cash flow is 12.7% of revenue: cash for dividends, buybacks or growth.
• A large company: market value $34.3 billion.

Next earnings report: 2027-01-22

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Questions

What grade does Telefonaktiebolaget LM Ericsson (publ) (ERIC-B.ST) have?

In our weekly check, Telefonaktiebolaget LM Ericsson (publ) is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 19 pass, warnings: 4, red flags: 2. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of ERIC-B.ST stock?

This week's biggest flags for Telefonaktiebolaget LM Ericsson (publ): Weak revenue growth, Deep past fall, Margins falling. In total 6 of 25 checks show a warning or a red flag.

What does Telefonaktiebolaget LM Ericsson (publ) do?

Telefonaktiebolaget LM Ericsson (publ) is a Technology company (Communication Equipment) based in Sweden, listed on STO as ERIC-B.ST.

When does Telefonaktiebolaget LM Ericsson (publ) report earnings next?

The next earnings report is expected on 2027-01-22. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

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